GBPUSD Trading Analysis


Dear traders,

The trading analysis from last time enfolded beautifully well. I managed to take a position off my Twitter analysis HERE

Initially I managed to get 5R ratio, which means the risk I took was rewarded 5 times.

Gradually I lifted my stop loss and managed to secure a small part of the profit.

In the following trading sessions unfortunately, there was a bullish engulfing pattern that formed on the daily chart. This candlestick pattern led to a massive sell-out the following day.

Since I did not close my position (partially my mistake) at that time, price moved back down to my stop loss level and I got closed out.

Sometimes you make mistakes by aiming too high and ignoring the current circumstances. I never said I was perfect and this is a great example of how I could have played this trade out better.

I was looking to get over 30 times the return of my original risk which was something I have accomplished in the past, but by continuously reading the market environment.

On this occasion, I ignored the following price action signals I was receiving from the daily chart and consequently the 4H chart.

GBPUSD Trading Analysis

Today’s trading analysis comes from the GBPUSD.

As you can see from the chart above, I believe there might be an opportunity to go long here.

GBPUSD reached a major support level just above 1.3000. The daily chart formed a bullish engulfing pattern and in the next few sessions I will be looking for a confirmation of that initial trading setup.

Ideally, I would like to see price returning back to the 1.3075 area and forming a bearish rejection or another significant bullish candlestick pattern.

Until that happens, I will be monitoring the price action of GBPUSD and planning my next move.

Happy Sunday,

Colibri Trader


Check out my recent article on Pitchfork Trading Strategies


Check out how I use the Inside Bar – another very important candlestick pattern

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